Purchased Loans

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Northeast Bank’s Loan Acquisition and Servicing Group seeks opportunities to purchase commercial whole loans on the secondary market. Our management team has been active in the loan acquisition and servicing business since the early 1990s, and has originated or acquired thousands of loans with balances exceeding $3 billion. With a deep bench of in-house credit, real estate, and legal experts, as well as extensive experience managing a broad range of assets nationwide, we are an effective loan transaction partner with a reputation for performance.

Loan Acquisition Targets

  • Single loan or loan pool transactions
  • Single loan balances up to $12 million
  • Pooled transactions from $1 to $100 million
  • No geographic restrictions within the U.S.
  • No term limits on maturity or interest rate terms
  • Lower yield requirements than fund buyers

About the Loans We Purchase

Northeast Bank’s in-house expertise and experience affords us the confidence and flexibility to consider a wide variety of loan types and deal structures and the ability to underwrite and close in as little as 10 business days. Our team offers a depth of expertise acquiring:

  • Commercial loans secured by all types of cash-flowing real estate, equipment or other business assets
  • Loans with a wide variety of rate and payment structures
  • Government guaranteed loans (e.g. SBA and USDA)
  • Loans that are performing, performing but criticized (or otherwise credit intensive) or sub-performing

Northeast Bank has no geographic restrictions within the US, no collateral type restrictions and given our low cost of funds has lower yield requirements than fund buyers.

Our Approach to Loan Purchasing

Our loan purchasing group has refined its approach through decades of experience purchasing and servicing commercial loans. In a typical deal, our in-house team:

  • Employs fundamental credit and collateral analysis to uncover value and quantify risk
  • Able to bid and close quickly due to in-house diligence platform
  • Long-term strategy, recognizing opportunity in out-of-favor asset classes and uninfluenced by short-term market fluctuations
  • Structures transactions to meet the needs of both buyer and seller
  • Collaborates with value-add, third-party partners that are the best in the industry or sector
  • Values long-term relationships with counterparties over a single transaction

Speed and expertise are key to our success in loan acquisition:

  • Within 48 hours of receipt of a comprehensive loan data tape, we will present seller with an indicative bid that outlines pricing, key assumptions, and key sale terms
  • In order to prepare the indicative bid, our team has already conducted preliminary collateral valuation using in-house staff
  • Upon acceptance of an indicative bid, we complete final diligence, including file review via an efficient approval process
  • Transactions are typically closed within 2 weeks of acceptance of indicative bid

National Lending Team

In-house team members across sourcing, underwriting, real estate valuation, legal review, and asset management, have acquired and originated thousands of loans of all types, throughout the United States.

Meet our Team

 

Contact Us

Contact us online or call Jon Levirne, SVP, Business Development, at 203.520.3330.

Contact Us Today.

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